Monday, March 23rd, 2015 at 7:12pm. 23 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "All that matters is if you can look in the mirror and honestly tell the person you see there, that you've done your best."--John McKay, American football coach
INFO THAT HITS US WHERE WE LIVE... Of course, sometimes you do your best and the results come in a bit less than that. We're sure builders were doing their best in February, yet Housing Starts dropped a precipitous 17.0% to a disappointing 897,000 annual rate. The Negative Nellies in the media got all bent out of shape over this, but let's look at some of the other data during the month. Retail sales were down, but not Internet and mail order buying. Manufacturing numbers were off, but utility businesses did very well. Could it have been the
Friday, March 20th, 2015 at 3:54pm. 25 Views, 0 Comments.
COMMENTARY: Mortgage investors were breathless with anticipation on Wednesday as they awaited word from the 2-day Federal Reserve monthly meeting and they were not disappointed. How they reacted to the news however was very much a surprise! As anticipated, the Fed met widespread market expectations and dropped the word "patience" from their rate hike guidance. This move was widely expected to cause rates to immediately increase. Didn’t happen! Curiously, rates actually dropped a bit. They answer why was due to how strongly the Fed noted economic growth has moderated over the six weeks and their acknowledgement that when the rate hike process begins, the rate of increase will probably be less - and spread over a longer period of time - than in…
Tuesday, March 17th, 2015 at 8:52pm. 46 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Genius, that power that dazzles mortal eyes, is oft but perseverance in disguise."--Henry W. Austin, American businessman
INFO THAT HITS US WHERE WE LIVE... Perseverance requires staying motivated, so here goes. Freddie Mac's March 2015 Economic & Housing Market Outlook was pretty optimistic. Their deputy chief economist said, "Overall, we're feeling good about housing and we expect this to be the best year for home sales and new home construction since 2007," when home sales hit 5.8 million. The reasons for Freddie's optimism include things like high affordability, improving labor markets, and rising rents. Fannie Mae's National Housing Survey reported that consumers who believe it would be easy to get a mortgage…
Saturday, March 14th, 2015 at 12:03pm. 61 Views, 0 Comments.
COMMENTARY: After last Friday’s stunning Jobs report, calmer heads prevailed early in the week as mortgage rates eased back a bit. And now the handwringing begins in earnest. Our merry Fedsters will meet in a two-day session next week to hammer out monetary policy strategy for the next six weeks. Their meeting will conclude on Wednesday with the release of their highly scrutinized post-meeting statement. There is concern among a minority of mortgage investors that the Fed will choose to tighten their benchmark short-term interest rates by 25 basis-points at this meeting. As long as that concern persists - it will be difficult for mortgage interest rates to make notable progress toward lower levels.
If the Fed does not increase the discount rate, in…
Monday, March 9th, 2015 at 4:33pm. 63 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Success is a journey, not a destination."--Ben Sweetland, American author and psychologist
INFO THAT HITS US WHERE WE LIVE... As we successfully journey through the housing market, we continue to observe encouraging signposts. For example, the Fed's latest Beige Book reports that lending, home sales, and home prices were up in most of the 12 Federal Reserve Districts across the country. This was put to expanded economic activity across many business sectors in the majority of U.S. regions. A property economist at a major economic research consultancy agreed: "...with affordability set to remain favorable and the wider economy growing strongly, mortgage volumes and home sales should strengthen from here."
Saturday, March 7th, 2015 at 11:47pm. 56 Views, 0 Comments.
COMMENTARY: As I sit here waiting for my flight to leave from Fort Myers to D.C. (first flight cancelled earlier today L) for college re-union weekend, the mortgage market has taken a tumble. For the 4th month in a row, the jobs report was a stunner. The number of jobs created in February rose by a much stronger than expected 295,000 and the national jobless rate tumbled from 5.7% to 5.5%. That's good news for folks with cash in the stock market but not so great for folks who have waiting to lock rates hoping they would go lower. Fortunately, I had advised 3 clients to lock yesterday and they’re happy campers today!
To View Rates CLICK HERE.
Have a great weekend!
Monday, March 2nd, 2015 at 2:07pm. 71 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Vision is the art of seeing the invisible." --Jonathan Swift, Anglo-Irish satirist, essayist, poet, and cleric
INFO THAT HITS US WHERE WE LIVE... What's often not visible in housing reports are the positive details behind the negative headline numbers. New Home Sales for January were down 0.2% from December, but that's a mere 1,000 units. Sales were still at a 481,000 annual rate, up a solid 4.6% versus a year ago. And sales would have come in up for the month if not for a 51.6% drop in the Northeast, the result of the region's epic blizzard conditions. Supply also improved, as new homes inventory grew 1.4%, to 218,000, its highest level in five years. Existing Home Sales were down 4.9% in January, but are
Saturday, February 28th, 2015 at 3:02pm. 69 Views, 0 Comments.
COMMENTARY: The biggest economic event of the week was Fed Chairwoman Janet Yellen's trip to Capitol Hill to present her semi-annual testimony on monetary policy. As expected, Mrs. Yellen set the stage for an increase of the Federal Reserve's Benchmark short-term interest rates later this year -- but she made it abundantly clear there are a number of economic milestones, especially with regards to inflation, that must be achieved before such a move is implemented. On balance, she did a good job of leaving the central bank’s options open with respect to the timing and magnitude of any shift in monetary policy. The fact she did not sound a more ominous tone helped nudge rates just a bit lower for the week.
In terms of economic news the coming week…
Monday, February 23rd, 2015 at 8:11pm. 99 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Fortune favors the audacious." --Desiderius Erasmus, Dutch scholar and social critic
INFO THAT HITS US WHERE WE LIVE... Some might consider it audacious to say all is well on the homebuilding front following last week's reports. Housing Starts dipped 2.0% in January, to a 1.065 million annual rate, with a 6.7% reduction in single-family starts. Equally disturbing, Building Permits were off 0.7%, to a 1.053 million annual rate. But in the last twelve months, single-family starts are up 16.3%, and permits up 5.8%. The 12-month moving average for overall housing starts (single- and multi-family) is at its highest level since 2008. And total number of homes under construction was up 1.1% in January and up
Friday, February 20th, 2015 at 7:32pm. 74 Views, 0 Comments.
COMMENTARY: With this uneventful holiday shortened week now in our rear view window mirror, a look ahead is the only way to go.
The biggest economic event of the coming week will be Fed Chairwoman Janet Yellen's upcoming trip to Capitol Hill to present her semi-annual testimony on monetary policy. Mrs. Yellen will almost certainly set the stage for a an increase in the Federal discount rate later this year -- but she'll go out of her way to indicate there are a number of economic milestones that must be achieved before such a move is implemented. Most mortgage investors have already priced in the move and thus perhaps the reason why the 30 year fixed is now cresting 4%.
In terms of macro-economic data, NAR will release January Existing Home Sales…